AT&T Corp, struggling from mounting investments in its core long-distance business and new efforts like local-phone services, said first-quarter profit from continuing operations dropped about 25% and that its second quarter would be more bleak, says the Wall Street Journal, opining that if it can’t bounce back from the hits it’s now taking on numerous fronts, it could be in a long-term decline, particularly in long-distance. The paper quotes Jack Grubman at Salomon Brothers, who has cut his earnings estimate on AT&T three times since January, saying They’re caught in a downward spiral – I don’t see it reversing anytime soon… in fact, this quarter could be a high-water mark for the next year or more.
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